Consider a Perfectly Competitive Firm When Its Industry Is in Long-Run

question 9

Multiple Choice

Consider a perfectly competitive firm when its industry is in long-run equilibrium.Which of the following statements is correct?

• A)The firm has successfully differentiated its product.
• B)The firm has successfully established barriers to entry.
• C)The firm has a strong profit incentive to expand capacity.
• D)The firm has no ability to affect its product's price.
• E)The firm is earning positive economic profits.

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Definitions:

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